I believe that given the developmental stages of a one year old - it would take a large amount of repetition for her to associate the words you used with the physical actions. I think that either you misheard her or something is causing you to be suspicious besides her actions.
sorry, "near," not "hear."
Do you have someone in your life that is making you uncomfortable on the child's behalf anyway? I don't think it is normal for a 1-year-old to say "eew" and then "eat" when you are putting lotion on her body hear her vagina. Would she understand and be able to respond accurately if you had asked her "who says 'eat' here" or something like that?